Broadcom CEO Brushes Off AI Slowdown Fears, Holds Firm on Soaring Revenue Targets

Broadcom CEO Hock Tan has emphatically rejected calls from AI peer Anthropic to slow down artificial intelligence development, boldly reaffirming his company's aggressive AI semiconductor revenue targets. This strong stance comes even as worries about increasingly powerful AI models led to a market jitter, causing Broadcom shares and broader semiconductor stocks to dip. Tan's message is clear: the demand for AI's foundational tech remains robust, regardless of the debate swirling around its future pace. The controversy began when Anthropic CEO Dario Amodei proposed a 'slowdown push' for frontier AI development, citing concerns over safety and the potential for AI systems to grow beyond human control. This sentiment quickly found support from other big names in tech like OpenAI Sam Altman and Tesla's Elon Musk, which sparked a significant sell-off in AI infrastructure companies as investors reconsidered future compute demand. However, Broadcom remains unwavering, with Tan pointing out the crucial, and perhaps surprising, detail that Anthropic itself is set to become Broadcom largest custom chip customer by 2027, highlighting the deep interdependencies in this fast-evolving sector. Broadcom sees sustained demand not just for AI research and development, but especially for 'inference compute' — the process where finished AI models are used in real-world products and services. Looking ahead, Broadcom is sticking to its ambitious financial goals, projecting AI chip revenue to hit $115 billion in fiscal 2027 and then double to $230 billion in fiscal 2028, significantly exceeding market expectations. The company believes demand still outstrips supply, and it's working to boost production to meet this appetite. This firm outlook underscores a key division in the AI world: while some call for caution, others, like Broadcom, are full steam ahead, confident that the underlying infrastructure powering AI will continue to see explosive growth.